crude futures West Texas Intermediate U.S. oil for April delivery added $3.24, or 3.38%, to $98.96 a barrel. The prices of WTI they peaked at $99.10 a barrel the day before, closing up more than 4%.
A huge military convoy from Russia was approaching the Ukrainian capital Kiev on Tuesday after ceasefire talks between the sides failed to advance on Monday.
Russia’s economic isolation worsened when the world’s largest shipping company, Maersk, said on Tuesday it would halt container shipments to and from Russia.
“The fragile situation in Ukraine and the financial and energy sanctions against Russia will sustain an acute crisis and oil will be well above $100 a barrel in the short term, or even higher if the conflict escalates,” said Louise Dickson, senior oil market analyst at Rystad, in a note sent to clients.
Major oil and gas companies, including BP and Shell, have announced plans to exit Russian operations and joint ventures.
Russian oil buyers are facing difficulties with payments and vessel availability due to sanctions imposed on BP for canceling fuel oil cargoes from a Russian Black Sea port.
Still, market confidence was offset in part by the fact that the United States and its allies are discussing a coordinated release of crude stocks to mitigate the supply disruption. The measure could reach between 60 million and 70 million barrels, media reported.
By Julia Payne, Reuters news agency
Source: Ambito
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